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In February, clothing retailer Eddie Bauer announced it had filed for Chapter 11 bankruptcy protection.
Now all of its stores could be on the verge of closing after it failed to find a buyer, according to court documents filed in early March.
Will Eddie Bauer stores close?
Eddie Bauer LLC, the operator of Eddie Bauer stores in the United States and Canada, and a licensee of the Eddie Bauer brand, could not find a satisfactory bidder for its assets by its March 3 deadline, according to a notice filed in the U.S. Bankruptcy Court of New Jersey. Since the retailer had no qualified bids for its remaining assets, the auction set for March 6 was canceled.
With Eddie Bauer not finding a buyer, it will continue store-closing sales at all of its brick-and-mortar locations “unless and until a more value-maximizing transaction becomes available,” according to the recent notice.
When contacted by USA TODAY on Saturday, March 7, Eddie Bauer LLC said it is “not commenting publicly beyond what is in the company’s court filings.”
In addition to not finding a bidder by March 3, Eddie Bauer confirmed that it retained RCS Real Estate Advisors, a national retail real estate advisory firm, to market 174 store leases. Eddie Bauer’s store portfolio includes 150 locations across 40 U.S. states and 24 locations across six Canadian provinces, according to RCS Real Estate Advisors’ news release.
Why did Eddie Bauer file for bankruptcy?
The Seattle-based clothing retailer filed for Chapter 11 bankruptcy on Feb. 9, citing declining sales, supply chain challenges and other issues for its current financial situation. The filing was made by Eddie Bauer LLC, a division of Catalyst Brands, which holds the license to operate roughly 180 Eddie Bauer stores in the United States and Canada.
Where are Eddie Bauer stores in Kentucky?
There are two Eddie Bauer stores in the commonwealth.
- Fayette Mall: 3401 Nicholasville Road in Lexington.
- Outlet Shoppes of the Bluegrass: 1155 Buck Creek Road Suite D-406 in Simpsonville.
Will the Eddie Bauer brand still exist if stores close?
Eddie Bauer LLC filed for bankruptcy, but Authentic Brands Group, which owns the intellectual property associated with the retailer’s brand, may license the brand to other operators.
The global brand development and licensing platform, which also has Reebok, Nautica, Brooks Brothers and Dockers in its portfolio, announced on Feb. 9 that it will focus on a “strategy centered on technical product innovation and digital expansion.” The expansion will be “anchored by the return of First Ascent,” Eddie Bauer’s elite performance line, Authentic Brands Group said.
The Feb. 9 announcement came on the heels of Authentic Brands Group’s Jan. 8 announcement that it would partner with longtime Eddie Bauer licensee Outdoor 5, LLC (Oved) to “assume responsibility for the brand’s e-commerce and wholesale operations, as well as design and product development in the United States and Canada.”
Contributing: Fernando Cervantes Jr. and Saman Shafiq, USA TODAY
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